ACCOUNTING SS2 THEORY

ANSWER 2 QUESTION IN THIS SECTION ONLY

SECTION A
1. i. Define errors ii. List and explain 4 errors that will not be disclosed by the trial balance
iii. State and explain 4 errors that will be disclose by the trial balance iv. Briefly explain 3
users of suspense account.
B. i. define book-keeping and accounting ii. Give three reasons why accounting records
are kept. iii. List 5 users of accounting information.
2. i. explain the term “contra” in control accounts ii. List three benefits of control account
iii. Mention 5 items to be found in a sales ledger control account?
B. i. what is a control account? Ii. Mention two types of control account. iii. Outline three
advantage of control account
3. Explain the following terms and give an example of each: i. raw material and component
ii. Direct labour iii. Direct expenses
B. give four examples of factory overhead
C. i. what is partnership ii. State 6 rules which shall apply in a partnership business in the
absence of any express agreement
SECTION B
ANSWER ANY 3 ONLY
4. Ife industries is a small business producing and selling food beverage. The following list
of balance have been extracted from the books as at 31st dec. 1998
₦
Sales 225,000
Purchased of raw materials 45,000
Carriage inward on raw materials 2,000
Carriage outwards on finished goods 1,000
Wages – factory operatives 46,000
Salaries – factory supervisors 11,250
- Management and clerical staff 31,000
- Sales and marketing staff 26,000
General expenses 4,875
Electricity and rent 16,000
Insurance 2,375
Advertising 5,000
Discount received 1,500
Plants and machinery 23,000
Delivery van 9,000
Stock at 1/1/98: raw materials 8,500
Work in progress 5,250
Finished goods`` 10,000
Stock at 31/12/98: raw materials 7.250
 Works in progress 8,000
Finished goods 12,500

Additional information
6. Stock at 30th September, 1999
Raw material 30,000
Finished goods 75,000
Work in progress 37,500
B. insurance and lighting are to be apportion ¾ for factory and ¼ for office
C. Depreciation is to be provided as follows: plant and machinery and office furniture 10%;
delivered van 5%
You are required to prepare : i. manufacturing account for the year ended 30th September,
1999 ii. Trading, profit and loss account for the same period.
5. The following information was extracted from the books of elim enterprise of the month
march 1997:
₦
March purchase ledger balance 59,820
Sales ledger balance 98,720
Totals for year ending march 1997:
Sales journal 998,310
Purchase journal 772,810
Return outwards 13,240
Return inwards 22,780
Cheque paid to suppliers 730,500
Petty cash paid to suppliers 390
Cheque and cash received from customer 929,800
Discount allowed 29,100
Discount received 10,670
Bad debt written off 1,980
Customer cheque dishonored 150
Set off 5,180
Sales ledger balance cr 72,650
Purchase ledger balance dr 108,290
You are required to prepare
i. Sales ledger control account
ii. Purchase ledger control account
6. The total of the trial balance of akanno did not agree. The difference was posted to the debt
of suspense account pending investigation.
A. the sales account was over cast by ₦170 and the purchase account was also over cast by
₦175
B. the totals of one page of the sales day book had been carried forward by ₦407 instead of
₦704
C. sales of goods to tunde for ₦300 had not been posted to tunde account
D. purchase undercast by ₦30
E. an item of fixed assets sold for ₦400 had been debited to cash and include sales.
You are required to :
i. Journalize
ii. Prepare suspene account
7. kumoye, sunmbo, and aderonke are in partnership sharing profits and losses in the rqtio
4:3:3. The following is the trial balance of the partnership as at 30th September 2000
Dr Cr
Capital account
Kumoye 45,000
Sunmbo 30,000
Aderonke 15,000
Current account
Kumoye 1,750
Sunmbo 1250
Aderonke 750
Debtors 57,500
Creditors 87,500
Provision of doubtful debts 2,500
Bank 16,250
Land and building at cost 150,000
Office expenses 6,000
General expenses 4,000
Motor vehicle at cost 50,000
Sales 375,000
Purchases 212,500
Rent and rate 4,500
Salaries and wages 5,500
Selling expenses 30,000
Insurance 5,000
Stock at beginning 40,000
Accumulated depreciation
Land and building 30,000
Motor van 2,000
Drawings
Kumoye 10,000
Sunmbo 7,500
Aderonke 7,500
Bills payable 40,000
Bills receivable 2,500
Equipment 37,500
647,500 647,500

Additional information
1. Stock at close was ₦75,000
2. Expenses owing: selling expense ₦700, wages and salaries ₦650, insurance ₦400
3. Expenses paid in advance: rents and rate ₦650, general expenses ₦470
4. Fixed assets are written off as follows: land and building 5% per annum on cost, moto
vehicle 20% per annum cost
5. Bad debts written off ₦1,500
6. Provision for bad debts is to be made equal 5% of outstanding debtors as at 30th
September 2000
7. The partnership agreement covers the following information: a. aderonke is to be allowed
a salary of ₦15,000 per annum, b. interest on capital to be 10% c. interest to be
charged on drawings 5%
You are required to prepare
i. Trading profit and loss account for the year ended 30th sept. 2000
ii. Partners current accounts
iii. Balance sheet as at that date
 ACCOUNTING SS1 THEORY
ANSWER ANY 4 QUESTION
1a. Define book keeping and financial accounting
b. mention ten users of financial accounting and state the user of financial accounting by any
of the 5 users
c. Define i. assets ii. Liability iii. Capital iv. Accounting equation
d. List the types of assets according to permanency and nature and explain them
2a. Give a brief history of accounting
b. List 5 professional accounting bodies
c. complete the following tables
assets liability capital
i. 4,000 2,900 ---------
ii. --------- 430 770
iii. 800 710 ---------
iv. 1,500 --------- 1,200
v. 4232 --------- 772
vi. --------- 10,005 1,235
d. classify into assets and liability
i. Bills payable
ii. Bills receivable
iii. Subscription in arrears
iv. Subscription in advance
v. Motor vehicle
vi. Debtors
vii. Bank overdraft
viii. Loans from Mr enobong
ix. Proposed dividend
x. Creditors
3a. Draw the balance sheet of Ayomide as at 31st dec. 2000 from the following item:
₦
Capital 130,000
Equipment 90,000
Creditors 9,000
Stock of goods 15,500
Cash 50,000
Bank 3,500
Loan from gad 20,000
b. show the effect of the following transaction
capital assets liability
i. Paid creditor cash₦ 20
ii. Bought goods on credit
 iii. Started business with ₦3000
iv. The owner takes out ₦150 cash for own use
v. A debtors pay is ₦13 by cheque
vi. Bought equipment ₦140 by cash
vii. Sold motor van ₦144 on credit

c. what is double entry book keeping system

d. state the rules of double entry
4a. Define accounts
b. state and explain the classification of accounts
c. complete the following table, showing the accounts to be debited and those to be ende
amount to be debited amount to be credited
i. Bought furniture by cheque
ii. Received commission by cheque
iii. Paid wages by cash
iv. Cash sales
v. Cash purchases
vi. Started business with money in bank
vii. The owner took cash for himself\
viii. Sold good on credit to mr. snake
ix. Bought fixture on credit from Mr odutola
d. Define subsidiary books
5a. Enter up the following transaction in the appropriate day books
June 5 bought goods from kala 35 shoes at 2100 each
Bought 70 shirts at 150 each
Trade discount 20%
June 7 returned goods to kala
12 shoes
14 shirts
June 10 bought goods from oshofa
5 crates of coca-cola at 400 per crate
35 crate of fanta at 250 per crate
Tading discount 15%
June 13 returned goods to shofa
11 crate of coca-cola
12 crates of fanta
June 16 sold goods to dare
8 shirts at 30 each
10 shoes at 40 each
Trade discount 10%
June 20 sold goods to ayo
 30 shirts at 40 each
12 shoes at 60 each
Trade discount 10%
June 23 goods returned to us by Dare
3 shirts at 30 each
2 shoes at 60 each
June 26 returned by Ayo
5 shirts at 40 each
2 shoes at 60 each
b. you are required to enter the following transaction in their relevant ledgers
jan 1 started business with 34,000 in the bank
jan 2 bought goods on credit from fuunmi 1,200
jan 10 bought motor van on credit from dele 32,000
jan 16 paid rate in cash 430
jan 18 sold goods on credit to olodo ₦2,500
jan 22 we returned goods to ejo 1,150
jan 29 paid salaries in cash 320
jan 30 withdraw cash 8,000 from bank.
 ACCOUNTING SS3 THEORY
SECTION A
1a. mention 3 disadvantage to a business that has not keep proper accounting records
b. explain the following characteristics of accounting information: i. relevance ii.
Comparability iii. Consistency iv. Reliability
c. state two limitation in the use of accounting information for business decision making
2a. explain with examples, the following component of cost in a manufacturing account i.
direct material cost ii. Direct labour cost iii. Factory over head
b. describe the 3 types of stocks in a manufacturing concern.
3a. which business organization have the need to prepare department accounts
b. state 2 reason for preparing departmental account
c. state how the following incomes and expenses are apportioned in departmental accounts:
i. Discount allowed
ii. Discount received
iii. Rent and rate
iv. Staff related cost
v. Depreciation
vi. Canteen expenses
vii. Electricity
viii. Advertising
ix. Bad debts
4a. list 6 users of accounting information
b. state the formula and the use of the following account ratio:
i. Quick ratio
ii. Net profit margin
iii. Total assets turnover
iv. Creditor’s payment period (in days)
SECTION B
5. Baako ltd. Purchased motor vehicle as follows:
Date quantity GH
01/01/2013 1 800,000
01/07/2013 1 400,000
01/04/2013 1 600,000
The company adopts a straight-line method of depreciation at the rate of 10% per annum
from the date of purchase. A separate account is prepared for provision for depreciation on
30th June 2014, the motor vehicle which was purchased on 1st July 2013, was sold for GH
240,000.
You are required to prepare:
a. Motor vehicle account for the year 2013, 2014, and 2015.
b. Provision for depreciation on motor vehicle account for the year 2013, 2014, and
2015.
 c. Motor vehicle disposal account
6. On 31st dec. 2016, the bank column of the cash book of aminata enterprise showed a debit
balance of D48,500. However, the bank statement showed a credit balance of D54,900 as on
the same date. A detailed comparison of entris revealed the following
i. Customer’s cheques amounting to D8,450 had not been credited by the bank as at
31/12/2016.
ii. Cheques amounting to D8,850 has not been presented for payment as at 31/12/2016
iii. Bank charges of D1,000 and interest on investments of D2,500 collected by the banker
appeared only in the bank statement
iv. On the 30/12/2016, there has a wrong credit of D3,500 in the bank statement
v. Kesse enterprise, a customer, had paid into the bank directly a sum of D3,000 on 29th
December 2016. This had not been recorded in the cash book
vi. A cheque for D2,000 received from jallo enterprise, a customer, which has deposited
has been returned unpaid. This had not been entered in the cash book.
You are required t0
a. Write the adjusted cash book
b. Prepare a bank reconciliation statement as at 31/12/2016.
7. Olu a sole trade has the following financial details for the year ended 31st dec. 2016
Cash book (summary)
₦ ₦
Balance b/d 6,000 creditors 12,000
Sales 10,000 salaries 5,000
Debtors 20,000 rent and rate 4,000
Insurance 1,000
Balance c/d 14,000
36,000 36,000

Additional information: 1st jan. 2016 31st dec. 2016

Stock ₦ 4,000 ₦2,000
Land and building ₦15,000 ₦15,000
Motor vehicle ₦6,000 ₦4,000
Debtors ₦2,000 ₦3,000
Creditors ₦1,000 ₦500
Insurance owing ₦2,000 ₦6,000
You are to prepare:
a. Statement of affairs as at 1st jan. 2016
b. Trading, profit and loss account fot the year ended 31st dec., 2016
c. Balance sheet as at 31st dec. 2016
8. kumoye, sunmbo, and aderonke are in partnership sharing profits and losses in the rqtio
4:3:3. The following is the trial balance of the partnership as at 30th September 2000
 Dr Cr
Capital account
Kumoye 45,000
Sunmbo 30,000
Aderonke 15,000
Current account
Kumoye 1,750
Sunmbo 1250
Aderonke 750
Debtors 57,500
Creditors 87,500
Provision of doubtful debts 2,500
Bank 16,250
Land and building at cost 150,000
Office expenses 6,000
General expenses 4,000
Motor vehicle at cost 50,000
Sales 375,000
Purchases 212,500
Rent and rate 4,500
Salaries and wages 5,500
Selling expenses 30,000
Insurance 5,000
Stock at beginning 40,000
Accumulated depreciation
Land and building 30,000
Motor van 2,000
Drawings
Kumoye 10,000
Sunmbo 7,500
Aderonke 7,500
Bills payable 40,000
Bills receivable 2,500
Equipment 37,500
647,500 647,500

Additional information
8. Stock at close was ₦75,000
9. Expenses owing: selling expense ₦700, wages and salaries ₦650, insurance ₦400
10.Expenses paid in advance: rents and rate ₦650, general expenses ₦470
11.Fixed assets are written off as follows: land and building 5% per annum on cost, moto
vehicle 20% per annum cost
12.Bad debts written off ₦1,500
13.Provision for bad debts is to be made equal 5% of outstanding debtors as at 30th
September 2000
14.The partnership agreement covers the following information: a. aderonke is to be allowed
a salary of ₦15,000 per annum, b. interest on capital to be 10% c. interest to be
charged on drawings 5%
You are required to prepare
iv. Trading profit and loss account for the year ended 30th sept. 2000
v. Partners current accounts
vi. Balance sheet as at that date
9. The trial balance of obinah for year ended 31st dec. 2016, was provided as follows:
₦ ₦
Capital 630,000
Drawings 69,000
Opening stock 300,000
Purchase and sales 1,050,000 1,200,000
Return 15,000 18,600
Debtors and creditors 29,400 21,000
Provision for doubtful debts 2,400
Salaries 90,000
Rates 18,000
Insurance 93,000
Telephone 3,000
Furniture at cost 120,000
Machinery at cost 90,000
Provision for depreciation 30,000
Furniture 15,000
Machinery 600
v Bad debts 39,000
Bank balance 1,917,000 1,917,000

Additional information
₦
i. Closing stock 31/12/16 360,000
ii. Rate prepaid` 1,500
iii. Telephone outstanding 660
iv. Accrued salaries 15,000
v. Provision of doubtful debt is yo br increased to 10% of debtors
vi. Depreciation on furniture at 10% on bank value
vii. Depreciation on machinery at 20% on cost

You are required to prepare for obinah the trading, profit, and loss account for the year ended
31st dec. 2016 and balance sheet as at that date